Determinants of tax avoidance disclosure moderated by firm size

Purpose: This study aims to analyze the effect of sales growth, profitability, and inventory turnover on tax avoidance moderated by firm size. Methodology/approach: This study uses secondary data from firm financial statements in a quantitative research approach. Companies in the real estate and...

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Main Authors: Nihayatul Maula Sari, Fajar Nurdin
Format: Article
Language:English
Published: Universitas Muhammadiyah Malang 2024-12-01
Series:Jurnal Akademi Akuntansi
Subjects:
Online Access:https://ejournal.umm.ac.id/index.php/jaa/article/view/37310
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author Nihayatul Maula Sari
Fajar Nurdin
author_facet Nihayatul Maula Sari
Fajar Nurdin
author_sort Nihayatul Maula Sari
collection DOAJ
description Purpose: This study aims to analyze the effect of sales growth, profitability, and inventory turnover on tax avoidance moderated by firm size. Methodology/approach: This study uses secondary data from firm financial statements in a quantitative research approach. Companies in the real estate and property sectors that are listed on the Indonesia Stock Exchange (IDX) between 2020 and 2023 make up the population. 34 samples in all were chosen using a purposive selection technique, and moderated regression analysis (MRA) was performed using EViews software. Findings: The study's findings show that while profitability and inventory turnover significantly reduce tax avoidance, sales growth has little influence on the practice. Firm size can minimize the impact of profitability on tax avoidance, but it has no influence on the link between sales growth and inventory turnover and tax avoidance. Practical and Theoretical contribution/Originality: It is anticipated that the Directorate General of Taxes will use the findings from this study as a guide when evaluating corporate tax evasion. It also explains how business size influences the relationship between tax avoidance and inventory turnover, profitability, and sales growth. Research Limitation: Because businesses have not been consistent in releasing financial reports over the 2020–2023 timeframe, and because the metrics are restricted to proxies for firm size, sales growth, profitability, and inventory turnover, this study has a narrow focus.  Additionally, only publicly available secondary data specifically, financial reports are used in data collecting.
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spelling doaj-art-d8aeaa9602e64204b233bb535af06acd2025-08-20T02:52:46ZengUniversitas Muhammadiyah MalangJurnal Akademi Akuntansi2715-19642654-83212024-12-018110.22219/jaa.v8i1.37310Determinants of tax avoidance disclosure moderated by firm sizeNihayatul Maula Sari0Fajar Nurdin1Faculty of Economics, Maulana Malik Ibrahim State Islamic University of Malang, Malang, IndonesiaFaculty of Economics, Maulana Malik Ibrahim State Islamic University of Malang, Malang, Indonesia Purpose: This study aims to analyze the effect of sales growth, profitability, and inventory turnover on tax avoidance moderated by firm size. Methodology/approach: This study uses secondary data from firm financial statements in a quantitative research approach. Companies in the real estate and property sectors that are listed on the Indonesia Stock Exchange (IDX) between 2020 and 2023 make up the population. 34 samples in all were chosen using a purposive selection technique, and moderated regression analysis (MRA) was performed using EViews software. Findings: The study's findings show that while profitability and inventory turnover significantly reduce tax avoidance, sales growth has little influence on the practice. Firm size can minimize the impact of profitability on tax avoidance, but it has no influence on the link between sales growth and inventory turnover and tax avoidance. Practical and Theoretical contribution/Originality: It is anticipated that the Directorate General of Taxes will use the findings from this study as a guide when evaluating corporate tax evasion. It also explains how business size influences the relationship between tax avoidance and inventory turnover, profitability, and sales growth. Research Limitation: Because businesses have not been consistent in releasing financial reports over the 2020–2023 timeframe, and because the metrics are restricted to proxies for firm size, sales growth, profitability, and inventory turnover, this study has a narrow focus.  Additionally, only publicly available secondary data specifically, financial reports are used in data collecting. https://ejournal.umm.ac.id/index.php/jaa/article/view/37310Firm SizeInventory TurnoverProfitabilitySales GrowthTax Avoidance
spellingShingle Nihayatul Maula Sari
Fajar Nurdin
Determinants of tax avoidance disclosure moderated by firm size
Jurnal Akademi Akuntansi
Firm Size
Inventory Turnover
Profitability
Sales Growth
Tax Avoidance
title Determinants of tax avoidance disclosure moderated by firm size
title_full Determinants of tax avoidance disclosure moderated by firm size
title_fullStr Determinants of tax avoidance disclosure moderated by firm size
title_full_unstemmed Determinants of tax avoidance disclosure moderated by firm size
title_short Determinants of tax avoidance disclosure moderated by firm size
title_sort determinants of tax avoidance disclosure moderated by firm size
topic Firm Size
Inventory Turnover
Profitability
Sales Growth
Tax Avoidance
url https://ejournal.umm.ac.id/index.php/jaa/article/view/37310
work_keys_str_mv AT nihayatulmaulasari determinantsoftaxavoidancedisclosuremoderatedbyfirmsize
AT fajarnurdin determinantsoftaxavoidancedisclosuremoderatedbyfirmsize